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Cablegate: Daily Summary of Japanese Press 07/09/08

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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1887/01 1910807
ZNR UUUUU ZZH
P 090807Z JUL 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 5710
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 1157
RUEHFK/AMCONSUL FUKUOKA 8782
RUEHOK/AMCONSUL OSAKA KOBE 2513
RUEHNAG/AMCONSUL NAGOYA 7006
RUEHKSO/AMCONSUL SAPPORO 9367
RUEHBJ/AMEMBASSY BEIJING 4296
RUEHUL/AMEMBASSY SEOUL 0285
RUCNDT/USMISSION USUN NEW YORK 0698

UNCLAS SECTION 01 OF 10 TOKYO 001887

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION;
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE;
SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR;
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 07/09/08

INDEX:

(1) G-8 summitry at a crossroads after 34 years-Expanding to G-13 or
going back to starting point? (Sankei)

(2) Editorial: Industrialized countries' responsibility to cut
emissions unclear (Mainichi)

(3) U.S. President on U.S. force realignment: Agreement being
implemented steadily (Ryukyu Shimpo)

(4) Gov't to negotiate with U.S. over Futenma airfield's danger,
Okinawa Prefecture to accept gov't stance (Ryukyu Shimpo)

(5) Japan, South Korea caught on horns of dilemma over Takeshima
Island (Asahi)

(6) National Police Agency to join international child porn database
(Asahi)

(7) DPJ Vice President Katsuya Okada: DPJ ready to assume political
reins, determined to serve in party presidential post (Asahi)

(8) Pace of economic recovery slowing further: Business sentiments
of everyday workers reaches lowest in six years and a half
(Mainichi)

ARTICLES:

(1) G-8 summitry at a crossroads after 34 years-Expanding to G-13 or
going back to starting point?

SANKEI (Page 1) (Full)
July 8, 2008

The Group of Eight (G-8) is now holding their annual meeting of
leaders at a resort hotel looking over Lake Toya in Japan's
northernmost main island of Hokkaido. With this event as the
opportunity, a war of words is now in full swing over the framework
of its membership. France and Britain claim that the G-8 can no
longer deal with global issues under its current framework of eight
countries alone, while Japan and the United States insist on
maintaining the current framework. In the United States, there is
even an argument calling for returning to the original gathering of
leaders from advanced democracies and excluding Russia from the G-8.
Japan is also poised to positively take up a common values agenda,
such as human rights and democracy around the world, in addition to
abductions and other issues directly involving Japan. Expanding or
returning to the starting point? The summit is now at a crossroads.

Among the G-8 members, there are arguments calling for the current
G-8 regime to be expanded with additional members. In this regard,
French President Sarkozy has been insisting on a group of 13 (G-13)
to involve five more countries, including China and India. In
addition, British Prime Minister Brown also proposes involving China
and India. Britain and France are expected to take up this issue in
a free discussion at today's G-8 meeting.

Britain and France insist on expanding the G-8 summit since they
both want to hold China, India, and other newly emerging economies
responsible for global warming and world economic issues -- the main
subjects for the G-8 summit this time. Meanwhile, the United States

TOKYO 00001887 002 OF 010


is against expanding the G-8 summit's membership. National Security
Council spokesman Johndroe clarified on July 7 that the United
States would not support the advocacy of expanding the G-8 summit's
membership. Japan is also against it.

The first summit, which was held in 1975, started with the
participation of six industrialized and democratic nations-Japan,
the United States, Britain, Germany, France, and Italy. For this
reason, there are also strong calls for requiring the summit's
membership to be limited to "industrialized" and "democratic"
nations. "It should remain a club of major market economies and
democracies," said U.S. Senator McCain, the Republican Party's
presidential candidate, on July 6. With this, McCain insisted on
excluding Russia while allowing India and Brazil to join.

Chief Cabinet Secretary Nobutaka Machimura also noted in yesterday's
press conference: "Basically, it is a gathering of advanced
democracies. If the summit's membership is expanded, its meaning
will change." With this, Machimura implied that China, which is a
nondemocratic country, is not suitable for summit membership.

However, Prime Minister Yasuo Fukuda's stance is quite different
from that of his predecessor, Shinzo Abe, who advocated a
"values-oriented diplomacy" for getting along with countries that
share such common values as freedom, democracy, and the rule of law.
When it comes to human rights in China, Fukuda once said: "I wonder
if we (Japan) can talk big about that." Fukuda himself is cautious
about the idea of returning to the starting point.

Japan has set global warming as a major subject for the G-8 summit,
while opposing the expansion of summit membership. Such an approach
is also filled with contradictions. Even though the G-8 agrees to
reduce greenhouse gas emissions, its effectiveness will be limited
if China and other newly emerging economies do not agree to do so,
because their CO2 emissions add up to 19 PERCENT of the whole
world's total emissions. President Bush noted in a joint press
conference with Fukuda on July 6: "We can't resolve the problem if
China and India do not share the same requirements that we do."

Fukuda, as Japan's leader hosting the G-8 summit, will be pressed
for a difficult judgment while being saddled with contradictory
challenges, namely, Japan is against expanding the G-8 summit's
membership and overtures dealing with global issues.

(2) Editorial: Industrialized countries' responsibility to cut
emissions unclear

MAINICHI (Page 5) (Full)
July 9, 2008

Where is the progress in this statement? This year's G-8 (Group of
Eight) summit, now underway at Lake Toya, Hokkaido, has drawn up and
released a declaration on the environment and climate change.

At first reading, one cannot determine whether there has been
progress on the main focus, setting a long-term greenhouse gas
emission reduction target, since last year. The declaration is
simply ambiguous.

This year's G-8 summit was required to advance the
anti-global-warming agreement reached in last year's Heiligendamm
summit. In other words, it was to reach a consensus on a long-term

TOKYO 00001887 003 OF 010


goal of reducing greenhouse gas emissions by at least 50 PERCENT
globally by 2050.

With President George W. Bush remaining dismissive of reaching an
agreement only among the G-8 nations without including such major
economies as China and India, there was concern that last year's
agreement might suffer a setback.

The declaration is designed to seek that the signatories to the UN
Framework Convention on Climate Change share and adopt the idea of
cutting greenhouse gas emissions by 50 PERCENT by 2050. The
declaration also indicates that the achievement of that goal
requires contributions by all major economies.

The worst-case scenario was averted because the declaration
specifies halving the emissions by 2050 and also because the United
States has joined the agreement.

Nevertheless, the declaration does not spell out that the G-8 have
agreed to halve the emissions by 2050. The extent to which the
industrialized countries are trying to fulfill their
responsibilities is not mentioned, either. Rather, the declaration
is based on participation of all major economies.

In order also to encourage participation by developing countries,
the industrialized countries must aim at targets higher than the
global goal. It is questionable if the agreed long-term target is
powerful enough to give a boost to post-Kyoto Protocol emission
cuts.

A consensus was also reached to set an ambitious midterm target for
each G-8 country. Considering the United States, which was reluctant
to set any targets, this can be called progress. It is unclear,
however, whether to make the midterm targets binding in the
post-Kyoto framework. The declaration is also void of specific
midterm numerical targets. The resolve of the industrialized
countries is unclear.

As was pointed out by the G-8, it is a fact that stopping global
warming takes more than efforts by the industrialized countries
alone. There is no question that all major economies, including
developing countries, must endeavor to reduce emissions.

The July 9 Major Economies Meeting (MEM) must move the G-8 agreement
a step forward. Japan is required to present responsible targets and
lead the discussion as an advanced country.

(3) U.S. President on U.S. force realignment: Agreement being
implemented steadily

RYUKYU SHIMPO (Page 2) (Full)
July 9, 2008

(Tokyo) This newspaper learned on July 8 that in the Japan-U.S.
summit meeting held at Lake Toya in Hokkaido on July 6, the two
leaders reconfirmed that implementation of the realignment of U.S.
forces in Japan would go according to the Japan-U.S. agreement.
President Bush said, "It will be an important matter for the next
administration," stressing, "It is very important the U.S.-Japan
agreement be steadily implemented." In response, Prime Minister
Yasuo Fukuda replied: "The Japanese government is committed to the
roadmap, and we would like to steadily implement it."

TOKYO 00001887 004 OF 010

In the meeting, specific projects for the realignment of U.S.
forces, such as the relocation of Futenma Air Station were not taken
up. The two leaders shared the view that the Japan-U.S. alliance has
deepened to a great degree, based on such security achievements as
cooperation on the reconstruction of Iraq, the agreement on the
roadmap for USFJ realignment, and the steady implementation of that
agreement. President Bush stated: "The U.S.-Japan alliance is the
cornerstone for America's East Asia policy. I would like to continue
our cooperation and efforts to strengthen it."

(4) Gov't to negotiate with U.S. over Futenma airfield's danger,
Okinawa Prefecture to accept gov't stance

RYUKYU SHIMPO (Page 1) (Full)
July 9, 2008

The government plans to hold an eighth meeting with Okinawa's
prefectural and municipal government officials at the prime
minister's office on the evening of July 18 to consult on the
planned relocation of the U.S. Marine Corps' Futenma Air Station,
sources said yesterday. According to the sources, the government
will then confirm its stance of negotiating with the U.S. government
on eliminating the danger of Futenma airfield in the form of
responding to Okinawa Prefecture's request. The government will
continue to consult with Okinawa Prefecture on where to lay down the
runways of an alternative facility for Futenma airfield, with an
offshore location in mind. Okinawa Gov. Hirokazu Nakaima is expected
to appreciate the government's stance and show a positive stance
about the government's request for his approval of land reclamation
as a step following the ongoing environmental assessment. In the
stalemated process of consultations over Futenma relocation, Okinawa
Prefecture will accept the government's stance. The Futenma
relocation will take on a new phase.

The next consultative meeting over Futenma relocation is set to
confirm that the Japanese government will negotiate with the U.S.
government on eliminating the danger of Futenma airfield, continue
to consult on where to build an alternative facility for Futenma
airfield with an offshore location in mind, and utilize local
contractors on a priority basis for the construction of an
alternative facility.

The government will hold a consultative meeting with Okinawa
Prefecture over the relocation of Futenma airfield for the first
time in about three months since the last one held on April 9.
Meanwhile, Prime Minister Fukuda is said to shuffle his cabinet in
late July. Ahead of such a rumored shuffle of the Fukuda cabinet,
Okinawa Prefecture wants the government to show its stance of
complying with the local request to eliminate Futenma airfield's
danger and move the Futenma replacement facility's construction site
to an offshore area. At the same time, the government also wants to
obtain local cooperation for the Futenma relocation.

In connection with his request to eliminate Futenma airfield's
danger, Nakaima has called for the airfield to be turned into "a
state of closure within three years." However, this has not been
discussed in concrete terms.

In the wake of a court ruling in late July on a class action lawsuit
against Futenma-based aircraft's noise, however, Chief Cabinet
Secretary Nobutaka Machimura has clarified the government's

TOKYO 00001887 005 OF 010


intention to negotiate with the United States. In the scheduled
consultative meeting as well, the government is expected to confirm
its plan to negotiate with the United States in consideration for
Okinawa Prefecture's request.

When it comes to Okinawa's call for moving the relocation site into
the sea, the government and Okinawa Prefecture have yet to reach an
agreement on a specific distance. The government and Okinawa
Prefecture will therefore confirm in the consultative meeting that
they will continue to consult on this offshore location.

(5) Japan, South Korea caught on horns of dilemma over Takeshima
Island

ASAHI (Page 4) (Excerpts)
July 4, 2008

A new source of contention has cropped up in relations between Japan
and South Korea, which have been improving with the launch of the
Lee Myung Bak administration. The issue of Takeshima Island (known
in South Korea as Dokdo), which both Japan and South Korea claim,
has flared up again. South Korea is stunned by the Education
Ministry's decision to mention in an instruction manual for its
curriculum guidelines for junior high schools that Takeshima Island
is an integral part of Japan. It is expected to map out the manual
this month. The issue could dampen amicable bilateral relations,
depending on the way the issue is handled.

Lee administration makes request as desperate measure

President Lee on the morning of May 19, the day after some news
companies reported Japan's decision to include a description of
Takeshima Island in the instruction manual, ordered Foreign Affairs
and Trade Minister Yu Myung Hwan to confirm the truth of the matter
and deal with it if it is true. The vice foreign affairs and trade
ministry immediately changed a plan to have the vice foreign affairs
and trade minister file a protest off record with the Japanese
minister to South Korea. Foreign Affairs and Trade Minister Yu
called in Ambassador Toshinori Shigeie to the ministry and directly
asked him about the matter.

When he was elected as president, Lee said, "I do not want to talk
about such matters like calling for apologies or self-reflection
from Japan in connection with the history issue." He also took a
future-oriented stance at the bilateral summit in April. The real
reason for his becoming nervous about Japan's move now and taking a
harsh stance is that his administration has been under the gun over
the U.S. beef import issue ever since he came into office.

The position of South Korea, which controls the islets in the Sea of
Japan is that there is no territorial issue. The previous president,
Roh Moo Hyun, in March 2005 opposed the establishment of Takeshima
Day by Shimane Prefecture, citing that it was an act justifying the
past aggression by Japan. As a result, bilateral relations grew
strained.

With that lesson in the background, the Lee administration was
launched. The widely-held view now in the ROK was that the recent
move by Japan is an act of betrayal of Lee, who had worked for a
dialogue with Japan. The ruling Grand National Party has taken a
harsh stand with one member saying, "If it is true, it is an
absolutely unforgivable act."

TOKYO 00001887 006 OF 010

However, the ROK government does not want to see a reemergence of
the Takeshima issue, either. One government source said, "We do not
want to create yet another source of contention." The South Korean
side has, therefore, contacted Japan's influential politicians, as
seen in the fact that former National Assembly Vice Speaker Lee Sang
Duk, President Lee's brother, met with former Prime Minister Mori in
June to confer on the matter. It is continuing efforts to seek an
understanding from Japan, explaining the Lee administration's
difficult position, instead of loudly insisting on its own stance.

Education Ministry comes under criticism on domestic front, if it
does not describe Takeshima issue in instruction manual

A senior Education Ministry official expressed his ministry's
dilemma, saying, "If we write about the Takeshima issue, it becomes
an issue. If we don't, we come under fire."

The instruction manual is expected to be released on July 14. Some
government officials called for the postponement of the description
of the Takeshima Island issue this time. Behind-the-door
coordination is continuing.

The Education Ministry has been under strong criticism from the
Liberal Democratic Party (LDP) that the coverage of the Takeshima
issue in school textbooks is insufficient. South Korea has mentioned
the Takeshima Island issue in its guidelines for junior high
schools. Its government-designated history books describe that
Takeshima Island has been traditionally its territory and that Japan
unilaterally included the islets in its territory during the
Russo-Japanese war.

For this reason, Japan has in recent years called on publishers when
screening school textbooks to mention in textbooks that the
Takeshima islets are an integral part of Japan. Then Education
Minister Nakayama in March 2005 made a Diet reply, "The Takeshima
Island islets should be described in the Education Ministry
curriculum guidelines."

However, the revised curriculum guidelines issued in March this year
do not refer to the Takeshima islets with consideration given to
such facts as the improved bilateral relations, as can seen in the
revival of shuttle summit diplomacy.

The Education Ministry told lawmakers who opposed its stance, "We
will clarify in outline the Takeshima Island issue in the
instruction manual." Mentioning in the instruction manual that the
Takeshima islets are traditionally Japanese territory is a fixed
policy line. The deep-rooted view among some officials in the
ministry is, "What is wrong about the instruction manual carrying
the government's official stance?"

However, some are worried that if the instruction manual contains
the Takeshima issue, Japan-South Korea relations could be "torn
apart," as a government source put it. Many Foreign Ministry
officials are concerned that the inclusion of such a description in
the instruction manual would affect the Lee administration and fuel
anti-Japanese feelings harbored in the South Korean society.

Lee will visit Japan on July 8-9 to take part in Lake Toya
Summit-related events. How to handle the instruction manual will
likely be left to the Kantei to handle as a political decision. That

TOKYO 00001887 007 OF 010


choice is likely to occur around the 14th after President Lee has
left Japan.

(6) National Police Agency to join international child porn
database

ASAHI (Page 3) (Abridged slightly)
July 9, 2008

The National Police Agency (NPA) has decided to join the
international database (DB) on child pornography to be established
by major industrialized nations at the International Criminal Police
Organization (ICPO) that is scheduled to become fully operational in
2009 or later. Readily available on the Internet, child pornography
is exchanged beyond national boundaries. By searching voluminous
illegal data, various countries, including Japan, intend to identify
and rescue victims of child pornography and uncover suspects.

Child pornography inflicts sexual harm on children in its production
process and might result in a situation more serious than kidnapping
or confinement. Child pornography, which can be obtained and copied
by anyone once posted on the Internet, might leave lasting damage.

In particular, difficulty in identifying children who were sexually
depicted in materials produced and/or disclosed overseas has been an
impediment to the recovery of damage and investigations.

There have been cases in which Japanese tourists visited Southeast
Asia for the purpose of paying to have sex with children and
photograp undressed girls.

The Group of Eight (G-8) countries agreed in 2001 to consider
measures against child pornography on the Internet. They also agreed
in 2005 to establish the DB at the ICPO.

A database by Britain, Canada, Germany and Norway is currently on a
trial basis with the aim of going into full operation in December
this year.

In Japan, a DB on child pornography possessed by those who had
violated the Law for Punishing Acts Related to Child Prostitution
and Child Pornography has been operational since 2002. The NPA has
decided to join the international DB by major industrialized nations
because the exchange of data on the Internet knows no national
borders.

Possessing child pornography for sales and/or provision is
prohibited under existing legislation in Japan. Individual
possession (simple possession) of child pornography is not
prohibited. The Liberal Democratic Party and the New Komeito jointly
submitted to the Diet in the previous session a bill amending the
law to ban the simple possession of child pornography and impose
punishments, including imprisonment with labor. A move to toughen
the penalty is gaining steam.

(7) DPJ Vice President Katsuya Okada: DPJ ready to assume political
reins, determined to serve in party presidential post

ASAHI (Page 4) (Full)
July 8, 2008

-- What is your assessment of the cabinet of Prime Minister Yasuo

TOKYO 00001887 008 OF 010


Fukuda?

Okada: On the whole, the Fukuda cabinet's policy is unstable. I saw
that in his remarks on the consumption tax issue. He also put off
the global warming issue when it comes to specifics. I can say he
lacks leadership. So, it seems to me that many issues have not moved
forward.

-- What is your plan to force Prime Minister Fukuda to dissolve the
House of Representatives?

Okada: Since the Lower House is dissolved when the prime minister
thinks the timing is good for him, he will not dissolve the Lower
House because he is driven into a corner. Yet, I assume that a Lower
House dissolution will occur sometime between this fall and next
January. Therefore, how we will fight in the next extraordinary Diet
session is extremely important.

-- What was your purpose of publishing in June the book titled
Political Change?

Okada: Since we aim to take the reins of government by winning the
next Lower House election, I wrote that book to let voters know what
will change through political change and how. My 20-year political
career demonstrates significance of political change.

-- The government of Prime Minister Morihiro Hosokawa was toppled in
1993 nine months after its inauguration. Don't you think the same
thing will happen?

Okada: The Hosokawa government was a coalition by seven parties and
one parliamentary group. The Democratic Party of Japan (DPJ), which
is a large party, is utterly different from the Japan New Party,
which was led by Hosokawa. The DPJ is ready (to hold the political
helm).

-- Why do you think people say that the DPJ is not united?

Okada: I think that's the stereotypical image of our party,
unfortunately. Many successive party heads were reluctantly forced
to resign. I think the confusion caused by those occasions might
have given such an image to people. The present situation is
completely different from the past. The number of party members
criticizing the party leadership has greatly decreased. So the DPJ
has become a quiet organization.

-- You wrote in your book that tax hikes would be unavoidable. You
favor a consumption tax hike with the view of covering pension
payments, don't you?

Okada: Yes, it is in terms of the pension issue. I said that the
consumption tax rate should be raised three percentage points to
cover pension payments, that means there would be no change in the
burden on the public, because pension premiums would decrease.
However, since both social security costs and government debt will
rise, it is crystal clear that reducing wasted tax money alone is
not enough. Both our party and the government should initiate a
long-term debate with an eye on the future after a primary balance
surplus is achieved.

-- You underscored in your book the need to stop the wasteful use of
tax money. Is the argument on that matter rough in your party?

TOKYO 00001887 009 OF 010

Okada: I won't say anything that will help our opponents.

-- What do you think of your role in realizing political change?

Okada: I have to think about a role that I should play at different
times. I will make decisions based on what I should do to realize
political change.

-- If your assumption of the presidential post would help your party
assume the reins of government, what would you do?

Okada: If the political helm is held first by the DPJ, then by the
LDP, and by the DPJ in about 10 years, truly mature democracy will
take firm hold in Japan. During that process, if I am required to
serve in the party head post, I am ready at any time to assume the
post. I don't know when I would be required to do so. If it is 10
years from now, I will be 65.

-- Do you continue to refuse to comment on the September party
leadership race?

Okada: I have to come out with a clear position by the day the
campaign begins at the latest, because it would be irresponsible for
a Diet member to say: "I don't know."

(8) Pace of economic recovery slowing further: Business sentiments
of everyday workers reaches lowest in six years and a half

MAINICHI (Page 1) (Full)
July 9, 2008

According to the June Economy Watchers Survey, released by the
Cabinet Office on July 8, the diffusion index for current economic
conditions, which gauges the mood among everyday Japanese workers,
fell for the third straight month to 29.5 points in June, down 2.6
points from the previous month. The reading is the lowest since
October 2001, when the economy was in recession, and the third
lowest to date.

The Cabinet Office has revised down its overall assessment of the
economy for the first time in five months from "the feeling of
economic recovery has been extremely sluggish" to "the feeling of
economic recovery has become even more sluggish."

Downside pressure on corporate earnings is continuing as an electric
machinery and apparatuses manufacturer in the Tokai region noted
that the situation did not allow it to pass the higher cost of raw
materials along to the prices of finished products and that many
companies that had significantly raised the prices of their products
were suffering from a major drop in orders. For this reason, an
increasing number of companies are trying to constrain labor costs,
as can be seen in the fact that while the proportion of job offers
for part-timers has increased, new job offers have declined,
according to a public employment security office in the South Kanto
Region. Business conditions are thus beginning to affect the
employment situation as a private job referral agency in Shikoku
noted that those who retire due to corporate downsizing and those
who retire due to corporate bankruptcies are increasing among
retirees. Sluggish consumption is also continuing as can be seen in
a supermarket in Shikoku, where food items whose prices have been
raised do not sell very well.

TOKYO 00001887 010 OF 010

SCHIEFFER

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